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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4020
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I own 100% of an s corporation. I pay personally families

Customer Question

I own 100% of an s corporation. I pay personally for my families health insurance. It shows on the K1 as Items affecting shareholder basis. Can I deduct those premiums on Line 29 of my 1040 or do they need to be considered medical expenses? My gross income limits my medical deductions.
Submitted: 6 months ago.
Category: Tax
Expert:  PDtax replied 6 months ago.
Hi from Just Answer. I'mCustomer I'll assist. Greater than 2% S corp shareholders can't deduct health insurance for themselves and families. It's a shame your spouse doesn't work in the corporation. She could get the health insurance deduction (she's not a shareholder, and I don't think the attribution rules apply). Since you pay personally, and the S corp reimbursed you, you get a k-1 adjustment for that amount of repayment. You CAN deduct those premiums as health insurance, since you were reimbursed by the S corp. Thanks for asking at Just Answer. Positive feedback is appreciated when you accept my response. I'mCustomer
Expert:  PDtax replied 6 months ago.
I mean as 1040, line 29 deduction, not as a schedule A itemized deduction.

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